InnerWorkings Reports 31.4% Revenue Increase for Fiscal Year 2011

Wednesday, February 15, 2012

Press release from the issuing company

InnerWorkings, Inc. (NASDAQ: INWK), a leading provider of global print management and promotional solutions, today reported results for the fourth quarter and fiscal year ended December 31, 2011.

Quarterly Highlights:

Record revenue of $175.2 million, an increase of 34.4% compared to revenue of $130.4 million in the fourth quarter of 2010. This represents the fifth consecutive quarter of record revenue.
Net income was $5.8 million, an increase of 63.1% compared to $3.5 million in the year-earlier period. Earnings were $0.12 per diluted share compared to $0.07 per diluted share in the year-earlier period. Both earnings per share figures include $0.01 per diluted share from the sale of Echo Global Logistics stock.
Record Adjusted EBITDA of $11.4 million, an increase of 45.0% compared to $7.9 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information.
Year-over-year enterprise revenue growth of 31.7% and transactional revenue growth of 42.0%.
Cash flow generated from operations was $10.8 million, an increase of 72.1% compared to $6.3 million in the fourth quarter of 2010.

Fiscal Year Highlights:

Record revenue for fiscal year 2011 of $633.8 million, an increase of 31.4% compared to revenue of $482.2 million in fiscal year 2010.
Net income was $16.4 million and diluted earnings per share were $0.34, compared to net income of $11.2 million and diluted earnings per share of $0.24 in fiscal year 2010, an increase of 46.2% and 41.7%, respectively.
Record Adjusted EBITDA was $37.7 million, an increase of 37.8% compared to $27.4 million in fiscal year 2010. Please refer to the non-GAAP reconciliation table below for more information.
Record organic revenue of $60.4 million from new enterprise accounts.
Record cash flow generated from operations was $27.8 million, an increase of 233.2% compared to $8.4 million in fiscal year 2010.

"Our record 2011 financial results were driven by successful execution against our strategic priorities and the breadth of our global platform,” said Eric D. Belcher, chief executive officer of InnerWorkings. “Moving into 2012, we are focused on winning global print management contracts and gaining share in the underserved middle market.”

Additional fourth quarter 2011 financial and operational highlights include the following:

72% of the Company's revenue was generated from sales to enterprise clients, with the remaining 28% derived from transactional clients.
As of December 31, 2011, the Company had an outstanding balance of $60.0 million on its $100 million bank credit facility and retained cash and short-term investments of $14.3 million.

"We achieved a number of significant milestones in 2011, including records for revenue, Adjusted EBITDA and operating cash flow, which demonstrate our growth and profitability momentum,” said Joseph M. Busky, chief financial officer of InnerWorkings. "We are committed to making the additional investments necessary to continue to improve our market position and enhance our competitive strengths.”

Conference Call

A conference call will be broadcast live on Tuesday, February 14, 2012, at 4:30 p.m. Central Time (5:30 p.m. Eastern Time). The live webcast discussion, which will include a Q&A session, will be hosted by Eric D. Belcher, Chief Executive Officer, and Joseph M. Busky, Chief Financial Officer.

To access the conference call by telephone, interested parties may dial (877) 771-7024. Interested parties are also invited to listen to the live webcast by visiting the Investor "Events & Presentations" section of InnerWorkings' website at investor.inwk.com/events.cfm. A replay of the webcast will be available later that day in the same section of the website.

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